Europe hit by energy shock ‘it has never seen’ – analyst

The head of an Italian energy think tank calls on households to use firewood, pellets, and heat pumps as gas prices skyrocket

Italy and the rest of Europe are experiencing an energy shock of unprecedented magnitude as electricity prices have almost doubled, according to Davide Tabarelli, president of the Italian energy researcher Nomisma Energia.

“Gas prices were at €0.7-0.8 per cubic meter, but had soared to €1.37 by the beginning of the year,” Tabarelli said in an interview with la Repubblica newspaper.

“Now, in October, the €2.3 mark has been crossed: Europe and Italy are experiencing an energy shock of unprecedented scale,” the analyst said.

Tabarelli also said that Italians should be ready for rationing during the coldest winter months. He also urged households to make use of alternative ways of heating, such as firewood and pellets, although he added that prices for those were also up. 

Read more

“Buy a power generator for this winter and maybe for the next one too,” Tabarelli said, stressing that the upcoming cold season would be challenging.

Earlier this month, the analyst had said that the Italian authorities would be forced to adopt a plan for gas rationing in the event of a complete lack of energy supplies from Russia. Tabarelli added that it would take at least two or three years to replace the large volumes of gas previously received from Russia.

The energy crisis in the region was dramatically exacerbated in early July after the first disruptions of Russian gas supplies to a number of EU countries. The reductions followed problems with the maintenance of turbines for the Nord Stream pipeline due to the sanctions imposed against Russia.

Last week, EU foreign policy chief Josep Borrell said that the prosperity of the bloc had been based on cheap energy resources from Russia. Meanwhile, Kremlin spokesman Dmitry Peskov remarked that the EU is paying enormous sums to the US for gas, thus depriving its economy of competitiveness.

Find more stories on economy and finance in TROIB business